Invest in stocks with confidence

I used to be skeptical about investing directly in stocks, always taking the safer route of mutual funds. The horror stories of people losing money overnight kept me away from the stock market. However, a close friend suggested I balance risk and explore investing in fundamentally strong stocks to maximize returns.

But honestly, I had no idea where to start. I began researching, following financial influencers, and reading books and articles. Everyone talked about fundamental and technical analysis, throwing around a lot of jargon—some I grasped, some I didn’t. That's when I decided to create my own approach. Keep in mind, this isn’t a recommendation, just my personal experience. If mutual funds work for you, stick with them.

Here’s what I did:

1. Embraced the Risk Mindset I developed a mindset to accept potential losses without panicking over short-term fluctuations (3 to 6 months). It wasn’t easy, but this step is critical for long-term investing.
2. Invested, Not Traded My strategy is long-term. I avoid the quick in-and-out trades that often lead to losses and then blaming the stock market as a "gamble." I’m in it for the long haul—at least one year, sometimes more.
3. Focused on Fundamentals I researched stocks from sectors like Pharma, IT, Finance, and more, analyzing profits, revenues, and debt levels. If a company shows strong financial health and decreasing debt, it’s fundamentally strong—companies like Infosys, HDFC Bank, and Reliance.
4. Diversified Across Sectors I spread my investments across sectors to manage cyclical performance. This helps cushion my portfolio when one sector underperforms, while another shines—last year, for example, defense and public sector stocks had a great run, but they’re not doing as well now.
5. Added ETFs as a Safety Net I also bought ETFs (Exchange Traded Funds) for stability, as they tend to offer some cushioning during market dips.

So far, this strategy is working for me. That said, the stock market is a long-term game. It’s not about quick gains—at least not for me. If you’re thinking about diving in, be sure to have patience and a risk mindset. What works for one might not work for all.